Monday, February 28, 2005

STOCKS & COMMODITIES:

During the "Bubble" in the late '90s some analysts equated parabolic Internet stocks to Commodities, as Fundamental Analysts changed their Earnings Growth parameter to "Future Earnings Growth"; now it seems that the stock market is indeed a market of Commodities after all, as the leading Industry Groups lately are Oil, Steel and other Industrial metals, Gold, even Uranium, and as of today, Dr. Copper. Whoever the leaders, the recent rallies - at least of big caps - have again failed at recent high levels again; the best hope would be a higher low and an upthrust to new highs on large Volume provided by M&As reducing shares;add corporate cash and sluggish Bonds, and IRA/Pension money.
The weekly Sentiment Indicators are certainly cooperating, remaining in neutral across the board, except for a Bullish AAII survey reading of 31.8% for both sides.

With record numbers of dollars coming out of Money Market Funds, mostly into the crowded trade of short term bonds, anyone who has a minimal knowledge of covered call options and/or an interest in hedging stock market exposure might want to check out: brentleonard.com for an alternative strategy that is low-risk as well as highly rewarding. For those of you wanting more details and actual trading results, a new book is available for $14.95 at Amazon.com: Zero (IN)Tolerance


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